An increase in profit or profitability is based on marketing and tracking what is working at what is not working, and then making an adjustment. Discover the importance of marketing when times are slow with help from the co-founder of a business advisory company in this free video on increasing profit.
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Well an increase in profit or a profitability is something that everybody is looking at trying to do. One of the areas that you can look at is in your marketing expenditures. If you are doing a lot of marketing you need to really track what is working and what is not. You need to go back to some of the guerrilla marketing things, person to person, networking that sort of thing. And if you are spending money on marketing items, and you are not seeing a return from those items obviously that is a good area that you need to quit using, and move to something that does work. One important thing is don't quit marketing just because times get slow. Obviously you have to do what you can afford, but don't give it up all together, because that is the life blood of the business. Another area that typically you want to look at to improve profitability is cost. If you look at everything from rent, sometimes you negotiate a lower rent if the economy is slow. You want to look at all your expenditures. If you are buying things that you don't have to have don't go out and buy a bunch of extra software, don't go out and buy a ton of publication materials that sort of thing if you don't need them. Obviously you buy with you need, but put a good close stringent high on everything that you spend, and scrutinize it, and don't spend it unless you really need to. If it doesn't make you money don't spend it.